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Powerlink Queensland 2013 - 2017 Revenue Proposal

© Copyright Powerlink Queensland All rights reserved Powerlink Queensland owns the copyright contained in this document. No part of the document may be reproduced or disclosed to any person or organisation without Powerlink Queensland's prior written consent.

Limitation: These reports have been prepared for Powerlink for thepurposes of establishment of project cost estimates for inclusion in theirrevenue proposal. The reports may be relied upon by Powerlink and theAustralian Energy Regulator. The reports are not to be relied upon byany other person or for any other purpose. We accept no liability orresponsibility whatsoever for or in respect of any use of or reliance uponthese reports by any third party.

PSC Estimatefor

Northern Bowen Basin AugmentationMay 2011

Specialist Consultantsto the Electricity Industry

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Contents.

1.1.

1.2.

1.3.

1.4.

1.5.

1.6.

1.7.

Executive Summary ........................................................................................................ 3

Project Brief ............................................................................................................................ 3

Estimate Summary ............................................................................................................. 3

Major Dependencies .............................................................................................................. 3

Major Assumptions ................................................................................................................. 3

Major Exclusions ................................................................................................................. 4

Major Risks ............................................................................................................................. 4

Consultant engagement ......................................................................................................... 4

2. Project Summary ............................................................................................................ 5

3. Scope and estimate limitations and methodology ...................................................... 6

3.1. Limitations .............................................................................................................................. 6

3.2. Methodology ...................................................................................................................... 7

4. Scope and estimate assumptions And allowances ..................................................... 8

4.1. General ................................................................................................................................... 8

4.2. Overhead Transmission Line Works ...................................................................................... 8

4.3. ,Substation ..................................................................................................................... 9

4.4. substation ............................................................................................................... 9

4.5. l ' substation ................................................................................................................ 9I

5. Scope of Work ................................................................................................................ 9 "

5,1. 275 kV Overhead Transmission Line Works .......................................................................... 9

5.2. 132 kV Overhead Transmission Line Works ....................................................................... 10

5.3. r iSubstaUon ................................................................................................................... 11

5.4. Substation ............................................................................................................. 11

6. Constructability and site specific issues ................................................................... 12

6.1. Sÿte Specific issues .............................................................................................................. 12

6.2. Staging of the Works ............................................................................................................ 12

7. Project Timeframe and key milestones ...................................................................... 12

8. Cost estimate ................................................................................................................ t3

9, References .................................................................................................................... 13

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1. EXECUTIVE SUMMARY

1.1. Project Brief

The project scope shall have the following key elements:

PSC Austraha (PSC) has been engaged by Powerlink to develop a high level concept scopeand estimate for this project. The nature of this engagement is one of a "desktop" study that.utilises the experience of PSC's personnel and PSC's own cost estimate "building b!ocks" todevelop a scope and estimate independent of Powedink.

1,2. Estimate Summary

The cost esbmate for the project is $79.1 million, within an overall accuracy range of $60.7 -$97.4 million.

1.3. Major Dependencies

Major dependencies include global base metal prices (Copper and.Aluminium) and foreignexchange rates (USD, Euro).

1.4. Major Assumptions

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PSC has been engaged to undertake the scope and estimate based on the following generallimitations:

o A low, likely and high cost shall be provided for the project, and the accuracy of the costestimate will be limited to the order of +_20-30%.

O

Any engineering or design required to develop the scope will be limited to that necessaryto obtain the degree of cost estimate accuracy required and by the above requirements.

+Detailed drawings or sketches, including CAD drawings are not included in the scope ofworks.

The cost estimate will cover the cost of design, procurement, project management,manufacture, delivery, construction, installation and commissioning

The overhead line and substations are in a remote area and as such a remote locationpremium of 10% (derived from regional indices for construction works in Rawiinsons2011 handbook) has been applied to the total project cost, to account for increasedcosts associated with distance from main population centres.

1.5. Major Exclusions

Specifically excluded from this cost estimate are:

• Specification development and pre-award engineering;

• Development and permitting costs;

• Environmental costs;

• Easement and land acquisition; and

• Powerlink internal costs.

1.6. Major Risks

Not identified.

1.7. Consultant engagement

This report was developed in accordance with the Federal Court expert witness guidelines,specifically the document "Guidelines for Expert Witnesses in Proceedings in the Federal Courtof Australia - Practice Direction" dated 5th May 2008.

PSC has worked previously for Powerlink, and specifically in the following context:

• Provision of SCADA and EMS support personnel in the Network Management Systemteam as part of the Operations Business Unit group since 2006,

• Provision of strategic planning advice since 2010 to the Plant Strategies team as part ofthe Network Strategy and Performance Business Unit which has included developmentof the following items:

o Substation telephony, and data network concept designs;

o Power Systems Applications Strategy;

, Date Pdnteÿ: 25/05/2011 PRINTED DOCUMENT IS UNCONTROLLED In OPowerlJnkPage4 °f 16 IQueenslandI

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o Operational Data Management Strategy; and

o Substation Operational Local Area Network Design Standard.

The author's of this report include:

* Les Brand - Electrical Engineedng Manager, PSC Australia

, Andrew Robbie - Principal Engineer, PSC Australia

• Keith Fisk - Secondary Systems Engineer, PSC New Zealand

• John Hendriks- Senior Electrical Engineer, PSC New Zealand

o Rob Silcock- CEO, PBA New Zealand

• Soumya Bhattacharya - Transmission Unes!Civil Engineer, PSC New Zealand

CVs are provided in Appendix B of this report.

2. PROJECT SUMMARY

The site location of the proposed new substation is shown in Figure 1.

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3, SCOPE AND ESTIMATE LIMITATIONS AND METHODOLOGY

3,1. Limitations


• To perform an independent, high level, scope and estimate for the project withoutknowledge or use of the Powedink Substation Design Manuals.

• Information provided by Powerlink shall be limited to a general scope description for theproject, and any techmcal information related to existing facilities and plant that =nay berequired by PSC.

i Date Printed: 2510512011 L PRINTED DOCUMENT IS UNCONTROLLEDPage 6 of 16

© Powerlink Queensland

* There will be no site visits.

. A low, likely and high cost shall be provided for the project, and the accuracy of the costestimate will be limited to the order of +20-30%.

o Any engineering or design required to develop the scope will be limited to that necessaryto obtain the degree of cost estimate accuracy required and by the above requirements.

, Detailed drawings or sketches, including CAD drawings are not included in the scope ofworks.

• The cost estimate will cover the cost of design, procurement, project management,manufacture, delivery, construction, installation and commissioning. Specificallyexcluded from our cost estimate are:

o Specification development and pre-award engineering;

o Development and permitting costs;

o Environmental costs;

o Easement and land acquisition; and

Powerlink internal costs.

3.2. Methodology

The methodology applied by PSC to develop the scope and estimate is descdbed as follows'

• PSC was provided with a copy of a Project Scope Report - Concept which describes thebasic requirements for the project. PSC reviewed this report.

• The project was broken down into "building blocks", a combinahon of which can make upthe scope of the project.

• The identified "building blocks" were developed in terms of scope and price estimates.

, Price estimates were obtained from any or all of the following:

o PSC's expedence and existing price information:

o Budget material and equipment prices from suppliers;

cÿ Matedal and construction costs using the Rawlinson's Australian ConstruCtionHandbook ; andtor

o Input from an experienced electrical construction contractor (PBA).

o The required number of"building blocks" was combined to create an overall scope andestimate of the project.

o Scoping and price information that cannot be broken into the "building blocks" e.g.design, project management, site specific contingency allowances, and remote locationpremiums, was then mdiv=dually developed and added to the scope and estimate.

o An overall high level project timeline is developed.

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4. SCOPE AND ESTIMATE ASSUMPTIONS AND ALLOWANCESThe following assumptions and allowances have been made in determining the scope of workfor this project:

4.1. General

• All costs provided are in current (Apd120t 1) Australian dollars.

• Current exchange rates for AUD-USD and AUD-Euro are based on a monthly averagefor Apd12011. obtained from http://www x-rates.com.

An allowance to cover off items that are site specific has been included of 10% - thisapplies across the whole of the estimate. This high level work did not include any sitevisits, and this allowance is intended to provide for various miscellaneous items thatwould normally be picked up during site visits/inspection.

Base metal prices (sourced from Olex Cables Australia website) are based on thefollowing:

Costs in this report are based on the estimated cost for an Engineer, Procure andConstruct (EPC) contract, and does not include overhead costs or Powerlink directcosts, including items such as pre-engineering works, approvals, planning,environmental management and Powedink project management costs.

4.2, Overhead Transmission Line Works

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5. SCOPE OF WORKA high level concept scope of work was developed based on the information provided to PSC.The scope was developed using a "top down" approach rather than a =bottom" up engineeringdesign.

The scope can be summarised in the project summary diagram of Figure 2,

5.1. 275 kV Overhead Transmission Line Works

I Page 9 of16I Date Printed: 25/05./2011 PRINTED DOCUMENT IS ÿJNCONTROLLED © Powerlirÿk Queensland

Figure 2 - Project Summary Diagram

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.-- Poÿ-ÿlnk wo(ks Ir;dudÿd bÿ tili$ soope ÿ _

-- Powadlnk ÿP.s included in this scope - new doubÿe ÿ.'t trOÿSllliSsio,q Ilno (ÿSW ÿ uÿlÿl}

PoWedlnk wocks izÿJudod m Ulis ÿ,xÿpa - r=m.l dout]ÿa dr(.,uÿ tÿansmisÿ ÿne (132kV ÿion)

-- Ergon EnRrgy ÿ,Kÿs ÿ'eqÿJired eÿ I -

5.2.

@

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6. CONSTRUCTABILITY AND SITE SPECIFIC ISSUES

6.'1. Site Specific issues

Not determined.

6.2. Staging of the Works

Two bus outages atcommissioned.

to enable the new feeder bays to be connected and

7. PROJECT TIMEFRAMEAND KEY MILESTONES

The project timeframe and key milestones are shown in the Gantt chart in Figure 3.

Figure 3 - Project timeline

............. = ............. : ÿ ÿ IT-- J

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Date Printed: 2510512011 i PRINTED DOCUMENT IS UNCONTROLLED ÿo) Power'link Queensland

8, COST ESTIMATEThe cost estimate for the project is $79.1 million, within an overall accuracy range of $60.7 -$97.4 million. The detailed breakdown is shown in Appendix A.

,ÿo o.o.ÿoo ÿ .I 8...I ÿov I ÿ,,.,, ! ÿ I

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9. REFERENCES

Document name and hyperllnk (as entered Into Objective)Project Scope Report - CP.01781, Northern Bowen BasinAugmentation - Concept, Powerlink document

Version Date11 FebruaryN!A 2011

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PSC Estimatefor

Switchyard ReplacementMay 2011


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Contents,

11.

1.2.

1.3.

1,4.

1,5.

1.6.

1.7.


Project Brief ........................................................................................................................ 3

Estimate Summary ................................................................................................................. 3

Major Dependencies ............................................................................................................ 3


Major Exclusions .................................................................................................................... 4

Major Risks ........................................................................................................................... 4

Consultant Engagement ......................................................................................................... 4

2. Project Summary ............................................................................................................ 6

3. Scope and estimate limitations and methodology ...................................................... 7

3.1. Limitations .......................................................................................................................... 7

3.2. Methodology ........................................................................................................................... 7

4, Scope end estimate assumptions And allowances ..................................................... 9

4.1. General .............................................................................................................................. 9

4+2. Substation ................................................................................................................... 9

4.3. Remote End Secondary Works .............................................................................................. 9

5. Scope of Work .............................................................................................................. 10

5.1. Substation ............................................................................................................... 12

5.2. Substation Works ............................................................... 14


6.1. Site Specific issues .............................................................................................................. 15

6.2. Staging of the Works ........................................................................................................ 15


8. Cost estimate ................................................................................................................ 16

9. References .................................................................................................................... 16

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1.1. Project Brief

PSC Australia (PSC) has been engaged by Powerlink to develop a high level concept scopeand estimate for this project The nature of this engagement is one of a "desktop" study thatutilises the experience of PSC's personnel and PSC's own cost estimate "building blocks" todevelop a scope and estimate independent of Powerlink.

1.2. Estimate Summary

The cost estimate for the project is $17,4 million, within an OVerall accuracy range of $13.3 -$21.6 million. The detailed breakdown is shown in Appendix A.

1.3. Major Dependencies

Major dependencies include global base metal pdces (Copper and Aluminium) and foreignexchange rates (USD, Euro).

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PSC has been engaged to undertake tile scope and estimate based on the following generallimitations:

• A low, likely and high cost shall be provided for the project, and the accuracy of the costestimate will be limited to the order of +_20-30%.

= Any engineering or design required to develop the scope will be limited to that necessaryto obtain the degree of cost estimate accuracy required and by the above requirements.

• There will be no detailed drawings or sketches, including CAD drawings.

@

The cost estimate will cover the cost of design, procurement, project management,manufacture, delivery, construction, installation and commissioning.

The substation are in a remote area and as such a remote Iocat=on premium of 20%(derived from regional indices for construction works in Rawlinsons 2011 handbook) hasbeen applied to the total project cost, to account for increased costs associated withdistance from main population centres.

1,5, Major Exclusions

Specifically excluded from this cost estimate are:

o Specification development and pre-award engineering;





t.6. Major Risks

Not identified.

1.7. Consultant Engagement


PSC has worked previously for Powedink, and specifically in the following context:

• Provision of SCADA and EMS support personnel in the Network Management Systemteam as part of the Operations Business Unit group since 2006.

Provision of strategic planning advice since 2010 to the Plant Strategies team as part ofthe Network Strategy and Performance Business Unit which has included developmentof the following items:

o Substation telephony, and data network concept designs;

€ÿ Power Systems Applications Strategy;

Date Printed: 25/05/20"11 I PRINTED DOCUMENT IS UNCONTROLLEDi page 4 of 18

.') Powerlmk Queensland



The author's of this report include:

• Les Brand - Electrical Engineering Manager, PSC Australia

• Andrew Robbie - Principal Engineer, PSC Australia


• John Hendriks - Senior Electrical Engineer, PSC New Zealand

• Rob Silcock- CEO, PBA New Zealand

• Soumya Bhattacharya -Transmission Lines/Civil Engineer, PSC New Zealand

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3. SCOPE AND ESTIMATE LIMITATIONS AND METHODOLOGY

3.1. Limitations

PSC has been engaged to undertake the scope and estimate based on the following generallimitations;

• To perform an independent, high level, scope and estimate for the project withoutknowledge or use of the Powerlink Substation Design Manuals

• Information provided by Powerlink shall be limited to a general scope description for theproject= and any technical informahon related to existing facilities and plant that may berequired by PSC

• There will be no site visits.

• A low, likely and high cost shall be provided for the project, and the accuracy of the costestimate will be limited to the order of _+20-30%.

• Any engineering or design required to develop the scope will be limited to that necessaryto obtain the degree of cost estimate accuracy required and by the above requirements.

• Detailed drawings or sketches, including CAD drawings are not included in the scope ofworks.


o Specification development end pre-award engineering;

o Development and permitting costs;

Environmental costs;

o Easement and land acquisition; and

o Powerlink internal costs.

3.2. Methodology

The methodology appliedby PSC to develop the scope and estimate is described as follows:

, PSC was provided with a copy of a Project Scope Report - Concept and a ConceptEstimate report (without any pricings) which describe the basic requirements for theproject. PSC reviewed this report.

• The project was broken down into "building blocks", e combination of which can make upthe scope of the project.

• The identified "building blocks" were developed in terms of scope and price estimates.

• Pnce estimates were obtained from any or all of the following:

o PSC's experience and existing price information;

o Budget material and equipment prices from suppliers;

Date Pdntad: 25/05/2011 I PRINTED DOCUMENTIS UIÿCONTROLLEDÿ ¢) Powerlink Queensland '

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o Material and construction costs using the Rawlinson's Australian ConstructionHandbook ; and/or

o Input from an experienced electrical construction contractor (PBA).

e

The required number of "building blocks" was combined to create an overall scope andestimate of the project.

Scoping and price information that cannot be broken into the "building blocks" e.g.design, project management, site specific contingency allowances, and remote locationpremiums, was then individually developed and added to the scope and estimate.

An overall high level project timeline is developed.

J Iÿ a t eÿP-ri n teci:ÿ257() 5/20"11 j PRINTED DOCUMENT IS UNCONTROLLED © Powedink Queensland j

1 SCOPE AND ESTIMATE ASSUMPTIONS AND ALLOWANCESThe following assumptions end allowances have been made in detennining the scope of workfor this project:

4.1.

o

o

General

All costs provided are in current (Apdl 2011) Australian dollars.

Current exchange rates for AUD-USD and AUD-Euro are based on a monthly averagefor April 2011, obtained from htto:llwww.x-rates.com,

Allowance for remote area works of a 20% premium, applying to the whole estimate, hasbeen included as the s=te is located over 600 km from Brisbane. Allowances foraccommodabng construction and site personnel seven days a week at or near site hasbeen allowed for..

An allowance to cover off items that are site specific has been included of 10% - thisapplies to the whole estimate. This high level work did not include any site visits, and thisallowance is intended to provide for vadous miscellaneous items that would normally bep=cked up during site visits/inspection.

O Base metal prices (sourced from Olex Cables Australia website) are based on thefollowing:

O Costs in this report are based on the estimated cost for an Engineer, Procure andConstruct (EPC) contract, and does not include overhead costs or Powerlink directcosts, including items such as pre-engineering works, approvals, planning,environmental management and Powerlink project management costs.

4,2,

Q

The location of the substation has been identified by Powerlink as a high pollution area+No specific allowance for this has been made in the cost estimate.

The Powerlink Project Scope Report refers to a requirement for a diesel generator,however PSC has since been adwsed that this is not required for this project and hasnot been included in this cost estimate.

4.3. Remote End Secondary Works

• This is assumed to be protection setting changes and communications modifications. Nospecific equipment or relay replacement =s allowed for.

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6. SCOPE OF WORKA high level concept scope of work was developed based on the information provided to PSC.The scope was developed using a "top down" approach rather than a "bottom" up engineeringdesign.

The existing arrangement of the 132kV yarddiagram of Figure 1.

Substation is shown in the single line

Figure I - Project Single Line Diagram - Existing Arrangement of 132kV Yard

Figure 1 shows that there are currently three 132kV busbar arrangements, two main busbars ("1BUS" and "2 BUS") and a third bus that appears to allow the substation to be bypassed ('3BUS"). It is proposed in this project to replace the existing arrangement with the arrangementshown in Figure 2.

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Figure 2 shows the proposed new double bus arrangement, with a bus coupler, but only singlebus connections (i.e. no bus selection provision).

A layout drawing of the ex=sting 132kV yard (located at the northern end of the yard) has beenprovided and is shown in Figure 3. This layout drawing shows the capacitors referred above(top-left comer). The scope of this project is to replace all equipment, structures and foundationsabove the row of transformers in Figure 3 (with the exception of the capacitor bank).

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5.1. ['-----'-I Substation

Refer to Figure 2 for the single line diagram of the works and Figure 3 for the substation layout.

5.1.1. Line Diversion Works

• Installation of five 132 kV strain poles to allow for the diversion of the existingfeeders, The poles are to be located in their final positions within the yard. TwoCVPs are included for line protection and power line carrier communication links,

,5.1.2. Site Establishment

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• Cable trenches using pre-cast concrete box culvert (600 x 450 ram), includingexcavation, installation, and backfilling.

• Concrete paving, kerbing, drainage etc.

5.1.3. Civil Works and Building Services

5.1.4. Substation Prima,y Equllnnent

Secondary Equipment

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.1,6. Telecommunications

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6.1. Site Specific issues

No site specific issues have been determined (excluded from scope).

6.2. Staging of the Works

The works consist of eight main stages:

7. PROJECT TIMEFRAME AND KEY MILESTONES

The project fimeframe and key milestones are shown in the Gantt chart in Figure 4.

Figure 4- Project timeline

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8. COST ESTIMATEThe cost estimate for the project is $17.4 million, within an overall accuracy range of $13.3 -$21.6 million. The detailed breakdown is shown in Appendix A.

Item Des©ripUon I.ÿ ! Lÿely ! Hÿh

I3 ' Toÿloÿmsÿ foÿ" prÿe¢.I

9, REFERENCES

Document name and hyperlink (as entered Into Objective) I Version I Date

geÿoÿnDate Printed: 2,5/05ÿ01't PRINTED DOCUMENT IS UNCONTROLLED © Powerlink Queenslend J

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I PRINTED DOÿUMEÿIT IS ÿ1ÿ1ÿ3ÿ [ © Pow "ÿk ÿenslÿnd|

PSC Estimatefor

New 275/1 lOkV SubstationMay 2011


" " Page I of 22

I E)ate Printed: 2.5/0512011 PRINTED DOCUMENT IS UNCONTROLLED © Powedink Queensland

I

Contents.

1,1.

1.2.

1.3.

1.4.

!5.

1.6.

17.


Project Brief ............................................................................................................................ 3

Estimate Summary ................................................................................................................. 3

Major Dependencies .............................................................................................................. 3


Major Exclusions ................................................................................................................... 4

Major Risks ............................................................................................................................. 4

Consultant Engagement ...................................................................................................... 4

2. Project Summary ............................................................................................................ 6

3, Scope and estimate limitations and methodology ...................................................... 7

3,1. Limitations .............................................................................................................................. 7

3.2. Methodology ........................................................................................................................... 7

4. Scope and estimate assumptions And allowances ..................................................... 8

4.1. General ................................................................................................................................... 6

4.2. Overhead TransmiSsion Line Works ..................................................................................... 8

, .., ......... ,..,. * * *..,,,,,, ......,, *. * *. • ....... ,..... ,., * • .................. * *.,.,.,., ....,,,, *. * *, .., g

4 4. New' Substation ..................................................................................................... 9

4.5. Remote End Secondary Works ............................................................................................ 10

4.6. Substation Works ................................................................................................... 10

.

5.1.

5.2.

5.4.

5.5.

5.6.

5.7.

Scope of Work .............................................................................................................. 11

275kV Overhead Transmission Line Works ....................................................................... 11

110 kV Transmission Line - Overhead Section .................................................................. 12

..................................................................... 13

New Substation .................................................................................................... 13

Substation ....... ÿ ..................................................................................................... 16

Substation ............................................................................................................ 16

Substation .......................................................................................................... 16


6.1. Site Specific isstles .......................................................................................................... t7

6.2. Staging of the Works ............................................................................................................ 17


8. Cost estimate ................................................................................................................ 18

9. References .................................................................................................................... 18

J Page 2 of 22 'Date Printed. 2510512011 I PRiN;FED DOCUMENT ÿUNCON'rROLLED © Powerlink Queensland


1.1. Project Brief

PSC Australia (PSC) has been engaged by Powerlink to develop a high level concept scopeand estimate for this project. The nature of this engaged is one of a "desktop" study that utilisesthe experience of PSC's personnel and PSC's own cost estimate "building blocks" to develop ascope and estimate independent of Powerlink.

1.2. Estimate Summary

The cost estimate for the project is $54.2 million, within an overall accuracy range of $41.8 -$66.6 million,

1,3. Major Dependencies

Major dependencies include global base metal prices (Copper and Aluminium) and foreignexchange rates (USD, Euro).

PPage 3 of 22 IDate Printed: 25/05/2011 PRINTED DOCUMENT IS UNCONTROLLED © PowerllnkQueensland_'



. A low, likely and high cost shall be provided for the project, and the accuracy of the costestimate will be limited to the order of -+20-30%.

• Any engineering or design required to develop the scope will be limited to that necessaryto obtain the degree of cost estimate accuracy required and by the above requirements.

• There will be no detailed drawings or sketches, including CAD drawings.

• The cost estimate will cover the cost of design, procurement, project management,manufacture, delivery, construction, installation and commissioning.

O The overhead line portion of this project is of a comparatively short length (5km). Topdown, per kitometre unit rates used for the cost estimate are based on longer lines (>50kin). It is acknowledged that shorter lines incur a higher cost per kilometre than longerlines due to the higher unit rates for materials and the fixed costs associated with thedesign end construction of the project. In this estimate a 2.0 multiplier has been appliedto the overhead line and OPGW portions of the work to allow for the short line length.

1.5. Major Exclusions

Specifically excludedfrem this cost estimate are:

• Specificat=on development and pre-award engineering;





1.6. Major Risks

Not identified.

1.7. Consultant Engagement


PSC has worked previously for Powedlnk, and specifically in the following context_

• Provision of SCADA and EMS support personnel in the Network Management Systemteam as part of the Operations Business Unit group since 2006.

• Provision of strategic planning advice since 2010 to the Plant Strategies team as part ofthe Network Strategy and Performance Business Unit which has included developmentof the following items:

o Substation telephony, end data network concept designs;

; Page 4 of 22DatePriilted: 25/05/201"1 ÿPRINTEDDOCUMENT|SUN-CONTROLLED i ÿtSowerlinkQueenslandi

o Power Systems Applications Strategy;



The author's of this report include'

• Les Brand- Electrical Engineering Manager, PSC Australia

o Andrew Robbie- Principal Engineer, PSC Australia


• John Hendriks- Senior Electrical Engineer, PSC New Zealand

• Rob Silcock- CEO, PBA New Zealand

• Soumya Bhattacharya -Transmission Lines/CivU Engineer, PSC New Zealand

Date : Page 5 of 22,Printed." 25105/2011 PRINTED DOCUMENT IS UNCONTROLLED I © Powerhnk Queensland '

2. PROJECTSUMMARY

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3. SCOPE AND ESTIMATE LIMITATIONS AND METHODOLOGY

3.1. Limitations

PSC has been engaged to undertake the scope and estimate based on the following generalhmitations:

• To perform an independent, high level, scope and estimate for the project withoutknowledge or use of the Powedink Substation Design Manuals,

• information provided by Powerlink shall be limited to a general scope description for theproject, and any technical information related to existing facilities and plant that may berequired by PSC.

• There will be no site visits.

• A low, likely and high cost shall be provided for the project, and the accuracy of the costestimate will be limited to the order of +20-30%.

• Any engineering or design required tO develop the scope will be limited to that necessaryto obtain the degree of cost estimate acouracy required and by the above requirements.

• Detailed drawings or sketches, including CAD drawings are not included in time scope ofworks.


• Specification development and pre-award engineering;

• Development and permithng costs;



° Powerlink internal costs.

3.2. Methodology

The methodo!ogy applied by PSC to develop the scope and estimate is described as follows:

• PSC was provided with a copy of a Project SCope Report - Concept which describes thebasic requirements for the project PSC reviewed this report.

• The project was broken down into "building blocks", a combination of which can make Lipthe scope of the project.

o The identified "building blocks' were developed in terms of scope and price estimates.

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Price estimates were obtained from any or all of the following:

o PSC's experience and existing price information;

o Budget mateda! and equipment prices from suppliers;

o Material and construction costs using the Rawlinson's Australian ConstructionHandbook ; and/or

o Input from an experienced electrical constrtlction contractor (PBA),

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The required number of "building blocks" was combined to create an overall scope andestimate of the project.

Scoping and price information that cannot be broken into the "building blocks" e.g.design, project management, site specific contingency allowances, and remote locationpremiums, was then individually developed and added to the scope and estimate.

An overall high level project timeline is developed.

4. SCOPE AND ESTIMATE ASSUMPTIONS AND ALLOWANCESThe following assumptions and allowances have been made in determining the scope of workfor this project:

4.1.

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General

All costs provided are in current (March 20t 1) Australian dollars.

Current exchange rates for AUD-USD and AUD-Eum are based on a monthly averagefor February 2011, obtained from htto:Uwww.x-rates.com,

NO allowance for remote area works has been included as the site is located in southeast Queensland nearlwithin major metropolitan areas, although accommodatingconstruction and site personnel during week days at or near site has been allowed for.

An allowance to cover off items that are site specific has been included of 10% - thisapplies to the whole estimate. This high level work did not include any site visits, and thisallowance is intended to provide for various miscellaneous items that would normally bepicked up during site visits/inspection.

Base metal prices (sourced from Olex Cables Australia websiLe) are based on thefollowing:

Costs in this report are based on the estimated coSt for an Engineer, Procure andConstruct (EPC) contract, and does not include overhead costs or Powerlink directcosts, including items such as pre-engineedng works, approvals, planning,environmental management and Powedink project management costs.

4.2. Overhead Transmission Line Works

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The overhead line route selected for the 110kV line is based on a direct route along theedge of Paradise Road in Larapinta. This is a straight route and minimises tile number ofstrain structures required, but assumes that adequate clearances are available andapprovals can be obtained.

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A high water table is assumed, and ground sod conditions are assumed unfavourable.The foundations for the transmission lines assume drilled caisson type and/or pile type

No reuse of existing string insulator assemblies, conductor fittings, or tower steelwork isassumed.

The overhead line portion of this project is of a comparatively short length (5kin). Topdown, per kilometre unit rates used for the cost estimate are based on longer lines (>50kin). It is acknowledged that shorter lines incur a higher cost per kilometre than longerlines due to the higher unit rates for materials and the fixed costs associated with thedesign and construction of the project. In this estimate a 2.0 multiptier has been apphedto the overhead line and OPGW portions of the work to allow for the short line length.

A multiplier of 1.2 has been applied to the overhead line and OPGW portions of the workto allow for the increased cost of performing overhead line works in a suburban area.This covers off various additional items, including environmentaltpermit compliance,traffic control and the cost of night works.

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4,4. NewI !Substation

• The information provided states that the site has been benched by the developers of theestate. Therefore it is assumed no bench works are required.

• The control buildings and substation yard are sized to accommodate the ultimate sitearrangement.

+

Page 9 of 22! Date Printed: 25/05/2011 I PRINTED DOCUMENT IS UNCONTROLLED ! ©PowerlinkQueensla_nd

If diversity does not exist it can mean the development of telecorns infrastructure thatwould affect the estimate by more than a few percent, and could easily be $1-2m moredepending on circumstances.

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It is assumed not necessary at to cut-in to DWDM (Dense Wave DivisionMultiplex) systems. These would add significant additional costs.

Remote end line protection and new line protection atland i is assumed to have direct interface to telecommunications, with noprotection signalling interface required. These would add significant additional costs toeach line protechon.

It is assumed that both fire and noise walls are required aroundhn the proximity of thetransfomler.

4.5. Remote End Secondary Works

No allowance has been made for the installation of new relays at the remote ends(I Substations).

The network changes needed atI ithe Control Centres and in thewider communications network are minor configuration and wiring changes and do not.entail significant design, equipment or documentation costs.

• Communication network changes sometimes made to facilitate other requirements orfuture changes in the telecommunications network are not known and are hence notprovided for.

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Substation Works

Existing site infrastructure for substation floodlighting, lightning protection, AC/DCsupplies is assumed adequate, with no modifications required.

No geotechnical survey for substation is required (existing site information is assumedavailable).

Sufficient panel space in the oontroltrelay room is assumed available for a newprotection relay panel,

Communications will be installed in a new cabinet in an existing space and that thatexisting DC and cabling infrastructure is adequate.

Page 10 of 22I Date 15rinted: 25/05/201t I PRtNTEO DocUMENT IS U-NC;'OÿNÿC)LLED----ÿ@ Po-weiiir;k Queensland

5, SCOPE OF WORKA high level concept scope of work was developed based oil the information provided to PSC.The scope was developed using a "top down" approach rather than a "bottom" up engineeringdesign.

The scope can be summarised in the single line diagram of Figure 2.

Figure 2 - Project Single Line Diagram

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5.1. 275kV Overhead Transmission Line Works

To achieve the 275 kV line cut in the following works are required:

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o Stringing of line with twin "Sulphur" conductor for each circuit and a single OPGW. Bothcircuits are bonded together at each end to form one electrical circuit.

5.3.

5,4, New Substation

Refer to Figure 2 for the single line d=agram of the works and Figure 3 for the substation layout.

6.4.1. Site Establishment

• Concrete paving, kerbing, drainage etc.

5.4,2. Civil Works and Building Services

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5.4.3. Substatio]l Primary Equipmÿliit

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6.4.4. Secondary EquipmenL

275 kV CbnLrol ÿdldinÿ

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11 o'kv Control Bdildirm

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, Eight marshaling boxes (five in 275 kV swltÿyardÿ threeÿin 110 kV switchyard).and associated control cable sets to.control/relay room, installed.

5.4.5. Telecommunications

The following teleÿmÿniÿations equipment has been allbwedÿ fbÿ

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5.5. Substation

The works include the following'

• Protection setting changes.

+ Communication equipment setting changes.

5.6. Substation

The works include the following:

+ Protection setting changes.

• Communication equipment setting changes.

5.7. I Substation

The 110 kV bus No.2 at the south side of the switchyard is to be extended by one bay toaccommodate the new 110 kV circuiL

The works include the following'

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6.1. Site Specific issues

The site is directly under a 275 kV double circuit transmission line. Initial constructionworks will deviate both circuits around site to allow construction on a 'green field' site. A doublecircuit outage of may be required to achieve this.

At an outage of Bus no.2 will be required to connect the new section of busbarassociated with the nawl circuit bay.

6.2. Staging of the WorksJ

In order to minimise the outage durations the 275 kVL circuits will bedeviated around site to provide a greenfield construction area. and facilitate removal ofredundant suspension tower =n the 275 kV switchyard area.

The majority of the initial 275 kV works (including construction of new termination towers andpoles for north and south deviations around site) can be carried out with the existing doublecircuit 275 kV line in service.

Once the deviations are in place the I substation works can proceed.

Final cut-in to substation landing gantries would occur towards the end of the constructionperiod, prior to commissioning of theÿ substation.

7. PROJECT TIMEFRAME AND KEY MILESTONES

The project timeframe and key milestones are shown in the Gantt chart in Figure 4

Figure 4 - Project tiroeline

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Date Printed: , Page 17 of 22 125/0512011 I PRINTED DOCUMENT IS UNCONTROLLED ' © Powerlink Queensland I

8, COST ESTIMATEThe cost estimate for the project is $54.2 million, within an overall accuracy range of $41.8 -$66,6 million, The detailed breakdown is shown in Appendix A.

r6 [ TOÿFeSÿIe foÿ nroÿe¢ÿ 41,755,339 54,177.069 66,$98.8ÿ0

9. REFERENCES

pcument name and hyperlink (as entered into Objective)ojcct Scopc Rcpor{ 275/110kV SL bsLatiÿm Rstÿdÿl'sh ÿent-)ncepL Powerlink docume It

Version Date

N/A 12 January 2011

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APPENDIX B - CVs

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